Some of our Escondido readers may be familiar with the restaurant known as Elephant Bar, a popular California-based chain that specializes in internationally inspired dishes. But, fans may have a harder time finding a location where the restaurant is still in operation these days, after the company that runs the restaurant filed for Chapter 11 bankruptcy on June 16 and closed 16 locations.
The company, S.B. Restaurant Co., is based in Costa Mesa. It appears that the company did everything that could be thought of to stem the tide of a steadily worsening financial situation, including attempts at increased marketing and changes to the restaurant's menu. Those efforts, unfortunately, were not enough to turn things around quick enough. The bankruptcy filing also indicated that the economic downturn of recent years played a significant part in the financial struggles the company faced as well. And, as a result, filing for Chapter 11 bankruptcy became necessary.
However, the good news is that the restaurant still has 29 operational locations, and the decision makers at the company believe that they can go through the Chapter 11 process and continue to stay in operation. That is particularly good news for the employees at those remaining locations.
While the business bankruptcy process can be complex and time consuming, it is often the only way that a struggling company can get the breathing room it needs to turn things around, no matter how bad things have become. Through a reorganization of business structure and a new debt agreement with creditors, a company can begin to address the core financial issues that are plaguing the business and then re-emerge in a stronger position in order to return to profitability.
Source: Nation's Restaurant News, "Elephant Bar files for Chapter 11, closes 16 restaurants," Lisa Jennings, June 17, 2014